Read How Analysts Reacted To DXC's Q4 Results

Analysts cut their price targets on DXC Technology Co DXC post Q4 earnings miss.
RBC Capital analyst Daniel Perlin reiterated DXC with an Outperform and lowered the price target from $47 to $39 (17.9% upside).
While Q4/22 results were lower than expected and FY23 guidance is light, Perlin believes DXC is generally progressing toward a more digitally focused, consistent and transparent operator.
The Outperform rating is based on: 1) management achieving its financial targets as it executes its strategic plan; 2) DXC evolving into an at-scale digital/new technology player, which should help offset declines in traditional solutions; and 3) an attractive valuation relative to peers.
BMO Capital analyst Keith Bachman maintained DXC with an Outperform and lowered the price target from $38 to $37 (11.8% upside).
DXC’s quarter and FY24 guidance have many moving parts, including the impact from Russia/Ukraine, FX, and dispositions.
Organic revenue growth missed the mid-point of guidance normalized though FCF was better.
Bachman was a tad disappointed with the rev and FCF guide for FY23 though DXC beat the original FY22 FCF guidance by ~50%.
Hence, Bachman thinks the FY23 FCF guidance and FY24 targets remain attainable, though unlikely to be achieved linearly.
Price Action: DXC shares traded higher by 13.6% at $33.44 on the last check Thursday.

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